|
PureBytes Links
Trading Reference Links
|
<x-html><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN">
<HTML>
<HEAD>
<META content=text/html;charset=iso-8859-1 http-equiv=Content-Type>
<META content='"MSHTML 4.72.3616.1301"' name=GENERATOR>
</HEAD>
<BODY bgColor=#ffffff>
<DIV><FONT color=#000000 size=2>Hello,</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>I am entertaining the idea of using Bull/Bear
Spreads to trade S&P 500 futures options. It's been about a decade
since I last investigated options spreads (stocks only - not futures) and have a
few questions. I contacted my futures broker and it was quite obvious he
was not totally up to speed on the topic himself. The conversation went
something like this ...</FONT></DIV>
<DIV> </DIV>
<DIV><FONT color=#000000 size=2>Me - I'm thinking about employing Bull/Bear
Spread futures options to daytrade the S&P 500 market. Let's take for
instance a hypothetical bull spread - buying the lower strike price call option
and selling the higher strike call option. What is my margin requirement
for such an animal?</FONT></DIV>
<DIV><FONT color=#000000 size=2>Broker- There is no margin requirement, you just
pay the net premium for the spread.</FONT></DIV>
<DIV><FONT color=#000000 size=2>Me - But what if the short call is in-the-money
and is exercised against me?</FONT></DIV>
<DIV><FONT size=2>Broker - You don't have to worry about that.</FONT></DIV>
<DIV><FONT size=2>Me - You mean no one ever exercises S&P 500 futures
options?</FONT></DIV>
<DIV><FONT size=2>Broker - You don't have to worry about that.</FONT></DIV>
<DIV><FONT size=2>Me - But let's say someone did exercise my short in-the-money
call option. I don't understand why I wouldn't be required to have the
funds (margin) to purchase a S&P 500 futures contract and deliver it to the
call buyer.</FONT></DIV>
<DIV><FONT size=2>Broker - You would be covered by your long call position. etc,
etc,</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>With each question, my broker placed me on hold and asked my
questions to someone else and then reported their input back to me. Could
someone who is well versed in this area please provide me will real answers to
my questions posed. Thanks, Brian</FONT></DIV></BODY></HTML>
</x-html>From ???@??? Sat Feb 12 20:21:29 2000
Return-Path: <listmanager@xxxxxxxxxxxxxxx>
Received: from mail.thetrellis.net ([208.179.56.11])
by purebytes.com (8.9.3/8.9.3) with SMTP id VAA06938
for <neal@xxxxxxxxxxxxx>; Sat, 12 Feb 2000 21:20:59 -0700
Received: from REALTRADERS.COM
([208.179.56.198])
by mail.thetrellis.net; Sat, 12 Feb 2000 20:15:28 -0800
Received: from smtp6.mindspring.com by realtraders.com
with SMTP (MDaemon.v2.8.5.0.R)
for <realtraders@xxxxxxxxxxxxxxx>; Sat, 12 Feb 2000 20:08:50 -0800
Received: from w06j1 (ind-in15-107.ix.netcom.com [205.186.161.107])
by smtp6.mindspring.com (8.9.3/8.8.5) with SMTP id XAA19815
for <realtraders@xxxxxxxxxxxxxxx>; Sat, 12 Feb 2000 23:11:53 -0500 (EST)
Message-ID: <000501bf75d4$8679a9a0$6ba1bacd@xxxxx>
From: "Pete" <plieber@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Subject: [RT] Natures Pulse & Metastock Data
Date: Sat, 12 Feb 2000 22:43:41 -0500
MIME-Version: 1.0
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: 7bit
X-Priority: 3
X-MSMail-Priority: Normal
X-Mailer: Microsoft Outlook Express 5.00.2919.6600
X-MimeOLE: Produced By Microsoft MimeOLE V5.00.2919.6600
X-MDaemon-Deliver-To: realtraders@xxxxxxxxxxxxxxx
X-Return-Path: plieber@xxxxxxxxxxxxx
Sender: listmanager@xxxxxxxxxxxxxxx
X-MDMailing-List: realtraders@xxxxxxxxxxxxxxx
X-MDSend-Notifications-To: listmanager@xxxxxxxxxxxxxxx
Reply-To: plieber@xxxxxxxxxxxxx
Status:
Converting Metastock EOD to Nature's Pulse
NOTE: This only works if you have Excel
Go to Windows Explorer and make three files:
a Security Spreadsheet file, a Security ASCII file, and
a Nature's Pulse Security File
Open Downloader
Open Tools, Convert
For "Source" choose the folder, choose the security
For "Destination" choose the spreadsheet security folder.
For "File Type" use Quattro / 123 (NOT Excel, though we will be
using Excel)
In "File Name" name the security and add ".wks" to the end (e.g. Spx.wks)
Go to "Options" and put in the correct Starting and Ending dates
Go to "Destination" and check the proper output files including "Date"
(make sure the "Export dates with 2 digit years" is UN-checked)
Hit the "Apply" button, and then "OK"
At the "Convert Securities" page hit "OK"
(hopefully you should get a message that it converted ok)
Close out Downloader
Open Excel
Go to "File", "Open"
Go to the security spreadsheet file
Under "Files of type" choose Lotus 123
Double-click on the file
When open delete all extraneous rows (those with no date/price data
usually the first two)
Widen the first (Date) column (Format, Column, AutoFit)
Go to File, Save As
Choose the Security ASCII file location where you want it saved
Under "Save as type" use the down arrow until you
find "CSV (OS/2 or MS-DOS) and click it
Hit the "Save" button
When you close out you will get the "XXX.CSV is not in Excel Format."
window. Just hit the "No" button
Close out Excel
Open Natures Pulse
Go to Utilities and select ASCII setup
Follow the instructions in your User Manual and
you're all set
|